Reducing debt facility by a total of 87 percent
On April 28 and May 7, 2010, TVI made two additional loan payments for US$3.3 million and US$3.0 million respectively for a total of US$6.3 million. In addition to the principal prepayment amount of US$6.3 million, accrued interest, advisory fees and a premium for the right to make the prepayment brought the total cash payment made by TVIRD to US$8.0 million.
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The latest prepayment of the loan facility, used to finance the construction of TVIRD’s mining and milling operations in Canatuan, brings the total outstanding principal balance down to US $4 million, a reduction of 87% from the original loan amount of $30.1 million.
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In order to facilitate the timely repayment of the Term Facility, TVIRD has acquired short-term loans from one of the top local Philippine banks bearing an interest rate of 4.3%, much lower than the original debt facility. Of the US$8.0 million paid, US$1.7 was from cash flow and US$6.3 was from short-term loans.